For emerging venture capital managers, an important early decision is whether to launch pre-seed or seed funds. Pre-seed funds offer early access to startups at their inception, capturing opportunities with higher risk and potential reward, while seed funds target companies that have begun to validate their ideas, offering a slightly more balanced risk profile and clearer growth path. But which strategy sets new managers up for long-term success?
Based on quantitative data from Decile Group’s VC Lab accelerator program for new and emerging managers, including 500+ funds that have successfully completed VC Lab between 2020 and 2024, this report breaks down how pre-seed and seed funds compare in terms of representation, sector focus and performance. By the end, you’ll have an answer to the question: Should your first funds invest in startups at their pre-seed or seed stage?